The row over whether the banks have been colluding will probably never be resolved, but there are increasing signs of competition.
One such sign is the wider range of mortgage bond rates now offered by the banks - and the spread between the lowest and highest rate is now about five percent.
Apart from the rate spread, there are three types of rates on offer:
* Variable rates, which are the most common. These rates go up and down as conditions in the market change. They are the traditional form rates for mortgage bonds;
* Fixed rates, which are fixed for a defined period. Whether the rates go up or down, you pay the same.
* Capped rates are the latest trend where a ceiling is set for a fixed period but you pay a premium (rather like an insurance premium). If the variable rates go up, you don't pay more.
But if they come down, so does your rate come down.
But you need to work out what is called the effective interest rate by adding the cost of the premium.
With both the fixed and capped rates you and the bank are betting against each other whether rates are going to move up or down.
On the whole if they move up you score. If they move down the bank wins.
High net wealth individuals tend to get the better deal generally because they are less likely to renege on the money they borrow.
But high net wealth does not mean you have to be a millionaire.
The most important issues in negotiating a better deal is the size of the bond and your ability to pay.
The administration costs to a financial institution of setting up a mortgage bond are much the same whether it is R10 000 or R200 000. So the bigger the bond the cheaper it is for the bank and for you.
In past years the banks mainly sought out customers by advertising campaigns that projected an image rather than competitive products.
But in South Africa consumerism, belatedly, is on the rise. Increasingly people want to know how they can get services cheaper.
And cheaper you can now get - and if you don't get it cheaper from one institution you can move to another. The best time to negotiate cheaper rate is when you take out a new mortgage bond.
You can even have this sorted out before you make any offer on a house.
Nearly all the banks will give you an assurance of a mortgage bond before you go house hunting, subject to conditions like fair market value when you find the cottage of your dreams.
Find out the range of prevailing interest rates and then shop around with all the banks.
If you agree to have your cheque account and your savings account with a particular bank it will also help your case in getting a cheaper bond.
Cheaper bonds are however not limited to new bonds. Most banks are prepared to give a little to have your business, particular if you come with a sound credit record.
If you feel you are paying too much at your current institution, check around and see if you can get a better deal elsewhere.
But be careful. You need to work out the figures.
If a relatively small amount of money is involved and you are only saving 0,25 percent, with bond closure charges from your current bank, you may have to think again.
Added to the costs are the legal costs for registration of the new bond and bank administration charges. Many of the banks will reduce these charges but there will always be some cost involved.
Obviously, if you can reduce your interest rate by 1,5 percent on a loan of more than R100 000 don't stop to think about it.
And you don't even have to tell your existing bank that you are leaving. The new bank will do everything for you.
If you are successful in shopping around for a lower rate with other banks you can always take the offer to your existing bank manager.
You will find most times that your bank will reduce your rate so that they don't lose your business, particularly if you are a good customer and use a number of its products.
Personal Finance has approached all the major banks to establish what they have on offer.
This information is a guide to what is available. Don't only compare interest rates. Add up all the charges.
But remember, it is up to you to negotiate the best deal.